Scott Carmilani is to leave his job as chief executive officer of Allied World to take a new role at the insurer’s parent company, Fairfax Financial Holdings.

Mr Carmilani, a well-known character in the Bermuda insurance market, has been with Allied World since it was set up on the island during the capital crunch after the September 2001 terrorist attacks and has been the CEO since 2004.

Lou Iglesias will take over as CEO of Allied World, having served as the company’s president for the past seven years.

Toronto-based Fairfax Financial announced yesterday that Mr Carmilani had joined Fairfax Insurance Group in a new role, established “to promote organic growth and collaboration initiatives across Fairfax’s insurance and reinsurance operations worldwide”.

In the new role, Mr Carmilani will work closely with Andy Barnard, president of Fairfax Insurance Group, and Paul Rivett, president of Fairfax Financial.

Fairfax stated: “Over the past 20 years, starting with a very small Bermuda operation, Scott, as CEO, built Allied World, which became a wholly-owned subsidiary of Fairfax in 2017, into a large and highly successful worldwide insurance and reinsurance operation with a track record among the industry leaders.

“In his new role at Fairfax Insurance Group, Scott will build on his network of contacts and broker and customer relationships in order to foster new growth initiatives, such as Fairfax Worldwide, and new collaboration initiatives with our insurance and reinsurance leaders around the globe.”

Allied World moves its holding company to Switzerland in 2010, but has maintained a significant underwriting operation in Bermuda.

Prem Watsa, chairman and chief executive officer of Fairfax, said: “We are privileged to have an executive of Scott Carmilani’s calibre focused on building Fairfax’s global organic growth initiatives.

“While always mindful of retaining our decentralised structure, we and the entire organisation will benefit from Scott’s guidance, energy and collaborative spirit.

“Meanwhile, at Allied World, Lou Iglesias, chosen by Scott as his successor, is a strong leader with the ability to continue to profitably grow the Allied business.”